on Wednesday, July 29, 2020
Financing is the key to any business. In the agriculture industry, purchasing power is critical to running a successful operation, from parts and service to seed and feed. Most importantly, you need financing to buy the equipment and machinery that sustains your day-to-day work.
When you finance through John Deere at your local TriGreen Equipment dealership, you’ll be introduced to customized financing solutions that fit your needs. But first, it is important to learn the differences between the three primary types of financing available to you. Understanding the basics of each type will help you make an informed decision about what works best for you.
Installment loans are the most common type of financing for both personal and commercial loans. The terms of the loan are that the borrower must make regularly scheduled payments of a portion of the principal borrowed, in addition to interest on the loan, over a set period of time. The length of installment loans can vary from three months to 30 years, and the interest rate charged over the term of the loan is fixed at the time of borrowing.
If you finance your installment loan through John Deere Financial, payments can be made online through a self-service portal, over the phone with a customer service representative, or via automatic payments once you have completed and submitted an enrollment form. Payments can also be made by mail as long as you include your statement and account information.
Revolving Lines of Credit
Rather than agreeing to a term loan, borrowers can opt for a revolving line of credit. Accepted at any John Deere dealer, this financing option offers the borrower a convenient and reusable line of credit. Rather than providing you with funds at the time of borrowing and establishing a set schedule of payments, a revolving line of credit allows you to borrow money as needed for the purchase of parts and equipment and to keep your operations running.
With a revolving line of credit, the borrower has the option to draw down or withdraw, repay, and withdraw again. When you draw against the loan, the available balance decreases. But when you make payments against the debt, the available balance increases. This type of loan can provide more flexible financing for borrowers who experience periods of revenue fluctuation.
John Deere Financial promotes their multi-use account as a single farm financing solution for purchases, including equipment parts, services, and attachments; crop seed, protectants, and fertilizer; livestock feed; fuel; and other general supplies. Extending to more than 9,000 dealer and merchant locations, the multi-use account offers seasonal terms tied to production cycles, allowing borrowers to get financing when they need it and repay after harvest.
Designed as a convenient and easy-to-use alternative to cash, the multi-use account provides borrowers with an additional source of working capital to free up dollars to allocate elsewhere. You can make purchases and then manage and track them online 24/7.
To get the financing you need to purchase new and used commercial, residential, and agricultural equipment, explore your options with TriGreen Equipment and John Deere Financial.